Federal · Title 46 — Shipping

46 U.S.C. § 31323: Disclosing and incurring obligations before executing preferred mortgages

Civil

What this law says, in plain English

A mortgagor must disclose in writing any known vessel obligations to the mortgagee before executing a preferred mortgage. Violation allows the mortgagee to demand immediate payment of the mortgage debt.

Read the full statutory text

On request of the mortgagee and before executing a preferred mortgage, the mortgagor shall disclose in writing to the mortgagee the existence of any obligation known to the mortgagor on the vessel to be mortgaged. wages of a stevedore when employed directly by a person listed in section 31341 of this title ; wages for the crew of the vessel; general average; or salvage, including contract salvage. On conviction of a mortgagor under section 31330(a)(1)(A) or (B) of this title for violating this section, the mortgage indebtedness, at the option of the mortgagee, is payable immediately.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.